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Investor Presentation
First Quarter 2018
EXHIBIT 99.1
Forward Looking Statement Disclosure
2
Certain statements contained in this presentation which are not statements of historical fact constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Words such as ‘‘believes,’’ ‘‘anticipates,’’ “likely,” “expected,” “estimated,” ‘‘intends’’ and other similar
expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Examples of forward-looking
statements include, but are not limited to, statements we make about (i) our future operating or financial performance, including revenues, income or loss and
earnings or loss per share, (ii) future common stock dividends, (iii) our capital structure, including future capital levels, (iv) our plans, objectives and strategies,
and (v) the assumptions that underlie our forward-looking statements.
As with any forecast or projection, forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances that may cause actual
results to differ materially from those set forth in the forward-looking statements. Forward-looking statements are not historical facts but instead express only
management’s beliefs regarding future results or events, many of which, by their nature, are inherently uncertain and outside of management’s control. It is
possible that actual results and outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking
statements. Important factors that could cause actual results to differ materially from those in our forward-looking statements include the following, without
limitation: (i) economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company’s business; (ii) the effect of and
changes in policies and laws or regulatory agencies, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislation and
regulation relating to the banking industry; (iii) management’s ability to effectively execute its business plans; (iv) mergers and acquisitions, including costs or
difficulties related to the integration of acquired companies; (v) the possibility that any of the anticipated benefits of the Company’s recent merger with
MainSource Financial Group, Inc. will not be realized or will not be realized within the expected time period, or that integration of MainSource's operations with
those of the Company will be materially delayed or will be more costly or difficult than expected; (vi) the effect of changes in accounting policies and practices;
(vii) changes in consumer spending, borrowing and saving and changes in unemployment; (viii) changes in customers’ performance and creditworthiness; and
(ix) the costs and effects of litigation and of unexpected or adverse outcomes in such litigation. Additional factors that may cause our actual results to differ
materially from those described in our forward-looking statements can be found in the Form 10-K for the year ended December 31, 2017, as well as its other
filings with the SEC, which are available on the SEC website at www.sec.gov.
All forward-looking statements included in this filing are made as of the date hereof and are based on information available at the time of the filing. Except as
required by law, the Company does not assume any obligation to update any forward-looking statement.
Presentation Contents
About First Financial Bancorp
Financial Performance
FFBC 1Q 2018 Standalone
Appendix
3
Company Overview
4
www.bankatfirst.com
Overview
Founded: 1863
Headquarters: Cincinnati, Ohio
Banking Centers: 190
Assets: $13.5 billion1
Loans: $9.1 billion1
Deposits: $10.5 billion1
Wealth Mgmt: $5.0 billion
$3.0 billion AUM
$2.0 billion brokerage
NASDAQ: FFBC
$29.35
$26.35$26.15$27.70$27.45
2.59%2.58%2.60%2.45%2.48%
1Q184Q173Q172Q171Q17
Share Price Dividend Yield
Lines of Business
Commercial / Private Banking
C&I, O-CRE, ABL, Equipment Finance, Treasury
Retail Banking
Consumer, Business Banking, Small Business
Mortgage Banking
Wealth Management
Investment Commercial Real Estate
Commercial Finance
1 Excludes impact from purchase accounting and branch divestiture
Market Centric Strategies
5
METRO MARKETS COMMUNITY MARKETS HEADQUARTERS NATIONAL
Louisville, KY
Columbus, OH
Indianapolis, IN
Dayton, OH
Southeastern IN
South Central IN
Northwest IN
Northern OH
Greater Cincinnati
Northern KY
Industry Specific
Low brand awareness
Low market share
High brand awareness
High market share
4th in market share
All business lines represented
Niche offering
Hometown Community
Significant branch network
Alternative to larger banks
Mass player, based on brand,
reputation and legacy
Visible presence
Large associate population
Deepen relationships
Expand product offering
Word-of-mouth referrals
Leads to organic growth
Build relationships through becoming
the Premier Business Bank
Bank the business, the business
owners and the employees
Leads to targeted growth across
all business lines
Oak Street Funding
First Franchise Capital
2018 Priorities
6
Successful integration of the two companies
Minimal customer disruption/quick recovery
Develop cohesive leadership team and culture that is embraced by our associates
Achieve expense savings and deliver the financial returns we communicated to our shareholders by 1Q 2019
Achieve targeted income and balance sheet growth
Develop and effectively communicate new plans
Strategic plan for the corporation
Business plans for the revenue lines
Functional plans for key staff areas
Implement risk framework for the new company, achieve satisfactory regulatory
exam ratings
Accomplish 2018 community plan objectives
Outlook – Combined Company1
7
Annualized loan growth expected to be in the mid-single digits on a percentage basis,
excluding divestitures and purchase accounting adjustments
No significant deposit attrition expected, excluding divestitures and market exits
Taxes
Projected to be 3.85% - 3.90% on a GAAP basis based on static interest rates
Includes estimated purchase accounting adjustments of 16 basis points
Does not include FTE adjustment of approximately 7 basis points
Modestly asset sensitive balance sheet, though benefits from future rate increases could be
muted by market competition on deposit pricing
Expected 2Q18 noninterest expense of $80 million
Does not reflect fully phased in cost savings
Quarterly noninterest expense base of $75 - $77 million by end of 2018
Fully phased in efficiency ratio of 50 – 52%
Noninterest Expense2
Net Interest Margin
Balance Sheet
Effective tax rate of approximately 19.5%
Credit Stable credit outlook, no systemic credit issues are anticipated
Capital
Target dividend payout ratio of 35 – 40%
All capital ratios expected to exceed current internal targets
Noninterest income2 Estimated to be $29 - $31 million on a quarterly basis
Mortgage headwinds expected due to market conditions
1 See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors
that could affect management’s expectations and results in future periods
2 Excludes merger-related activities
Merger Integration Update
8
Executive management team transition complete
Combined Board of Directors in placeGovernance
Merger Integration
Financial
Considerations
Phase 1 complete
Technology Assessment – Complete
Organizational Structure / Staffing Assessment – Complete
Phase 2 ongoing
Action teams actively engaged across all functional areas
Contract Negotiations / Terminations – In Process; mostly complete
Branch divestiture – In Process; target close mid-May
Targeted cost saves expected to be realized by the end of 2018
Loan Marks:
Credit mark of 1.25% - 1.75%
Rate mark of 2.25% - 2.75%
Core deposit intangible between 1.75% - 2.00%
Branch network – 41 banking centers consolidated by conversion with additional
consolidations expected prior to year end, in addition to 5 branch divestitures
Merger Timeline
Merger finalized on 4/1/2018
System and brand conversions remain on target for late May
Combined Bank At Close – Loans and Deposits
High Quality, Low Risk Portfolio
Well-diversified / no significant concentrations
Strong credit quality profile
Solid credit management & oversight
Concentrations to total risk based capital
comfortably within regulatory guidance
9
Loan Portfolio Overview
Top tier retail franchise drives strong, consistent
deposit base
Low cost of deposits
Commitment to core funding
Successful, consumer/retail operating model
Deposit Portfolio Overview
Loan Portfolio
Deposit Portfolio
Total Loans: $9.1B1
Total Deposits: $10.5B1
1 Excludes impact of purchase accounting and branch divestiture
Time
21%
NIB
Demand
23%
IB Demand
25%
Savings
31%
Commercial & Leasing
(inc. OOCRE) 40%
Consumer
Lending
22%
Construction 7%
Investor
CRE 31%
Combined Bank At Close – Investment Portfolio
10
Portfolio Composition Portfolio Quality
Total EOP investments of approximately $3.2 billion
Investment portfolio / total assets = approximately 23%
Portfolio duration = estimated 3.7 years
Agency Mortgages
46%
Municipals
17%
Agency
commercial MBSs
9%
ABS Other
6%
Agency
collateralized &
insured muni
securities
5%
Asset backed CLOs
5%
Private label
commercial MBSs
4%
Corporate bonds
3%
ABS FFELP
2%
Other
2% US Treasury/Govt
Agency
1%
Agency
57%
AAA
13%
AA+
4%
AA
5%
AA-
5%
A+
4%
A
1%
BBB+
1%
BBB
2%
FRB/FHLB
Stock
2%
Other
6%
Combined Bank – Capital & Profitability
11
Total Assets3
Total Capital Ratio1
ROAA ROATCE2
Tangible Common Equity Ratio1,2 Tier 1 Capital Ratio1
1 See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors that could affect management’s expectations and results
in future periods
2 See Appendix for non-GAAP reconciliation
3 Excludes purchase accounting and branch divestiture
4 See Appendix for non-GAAP reconciliation and Slide 20 for Adjusted Earnings detail
5 Adjusted for merger-related expenses
8.2%8.4%
8.4%
Est. 2Q 2018MSFG 3/31/18FFBC 3/31/18
11.0%11.2%
10.8%
Est. 2Q 2018MSFG 3/31/18FFBC 3/31/18
12.7%
13.3%13.2%
Est. 2Q 2018MSFG 3/31/18FFBC 3/31/18
$13,451
$4,553
$8,898
At CloseMSFG 3/31/18FFBC 3/31/18
1.5%1.5%
MSFG 1Q18FFBC 1Q18
17.6%
18.2%
MSFG 1Q18FFBC 1Q18
4 5 4 5
Company Overview
12
Claude Davis has assumed the role of Executive Chairman of the board
Three-year term, then transitions to Non-executive Chairman
Archie Brown, Jr. serving as President & CEO, member of the board
Jointly leading the company, partnering on strategy, management & performance
Also jointly leading the transition team to ensure successful cultural integration
Chairman &
CEO Roles
Executive
Chairman Role
Newly created role to provide capacity for CEO to focus on business execution & results
Role will focus on:
Board Integration
Strategy
Investor Relations
Corporate Development
Community, Regulatory & Government Relations
Regulatory Management Model
Oversee development of ERM model to meet the increased regulatory & compliance
requirements of a $10B+ bank
Company Overview
13
Chief Banking Officer – Anthony Stollings
Chief Financial Officer – Jamie Anderson
Chief Administrative Officer – John Gavigan
Chief Credit Officer – Bill Harrod
Chief Risk Officer – Shannon Kuhl
General Counsel – Karen Woods
Chief Internal Auditor – Matt Burgess
Executive Team Line of Business Leaders
Commercial Finance – Rick Dennen
Commercial & Private Banking – Brad Ringwald
Investment Commercial Real Estate – Paul Silva
Wealth Management – Greg Harris
Consumer – Chris Harrison
Mortgage – Ann Davis
Invest with First Financial
14
Experienced and proven management team
Increased scale to invest in franchise and achieve top quartile financial returns
Proven & sustainable business model
Well managed through the cycle
Conservative operating philosophy
Consistent profitability – 110 consecutive quarters
Robust capital management
Prudent steward of shareholders’ capital
Strong asset quality
Well defined M&A strategy
Selective markets, products & asset diversification
Invest with First Financial
15
1 Includes dividend reinvestment
2 Peer group includes KBW regional bank index peers
3 Based on stock price as of 04/25/2018
4 Beginning date is 04/25/2017 for the 1-year return, 04/25/2015 for the 3-year return, and 04/25/2013 for the 5-year return
Total Shareholder Return1,2,3,4
140.3%
98.3%
13.9%
20.4%
111.4%
54.4%
6.6%
3.6%
146.8%
72.3%
17.5%
7.8%
5 Year 3 Year 1 Year YTD 2018
FFBC KBW Peer Median KBW Peer Top Quartile
Presentation Contents
About First Financial Bancorp
Financial Performance
FFBC 1Q 2018 Standalone
Appendix
16
FFBC 1Q 2018 Highlights
17
Profitability
Net income = $30.5 million or $0.49 per diluted share. Adjusted net income = $32.4 million or $0.52 per diluted share1
Return on average assets = 1.40%. Adjusted return on average assets = 1.49%1
Return on average shareholders’ equity = 13.31%. Adjusted return on average shareholders’ equity = 14.14%1
Return on average tangible common equity = 17.17%1. Adjusted return on average tangible common equity = 18.24%1
Total assets increased $1.5 million compared to the linked quarter to $8.9 billion.
EOP loans increased $88.8 million, or 6.0% annualized, compared to the linked quarter.
EOP deposits increased $115.5 million, or 6.8% annualized, compared to the linked quarter.
EOP investment securities decreased $10.4 million, or 2.0% annualized, compared to the linked quarter.
Balance Sheet
Asset Quality
Income Statement
Capital
Noninterest income = $16.9 million.
Noninterest expense = $52.3 million; $49.9 million1 as adjusted for significant items impacting quarterly
performance.
Efficiency ratio = 56.4%. Adjusted efficiency ratio = 53.8%1
Effective tax rate of 20.1%. Adjusted effective tax rate of 20.1%1
Net interest income = $75.8 million, a $0.2 million increase compared to the linked quarter.
Net interest margin of 3.80% on a GAAP basis; 3.84% on a fully tax equivalent basis, a 2 bp increase from the
linked quarter.
Average earning assets grew 4.19% on an annualized basis.
Provision expense = $2.3 million. Net charge offs = $1.9 million. NCOs / Avg. Loans = 0.13% annualized.
Nonperforming Loans / Total Loans = 0.74%. Nonperforming Assets / Total Assets = 0.52%.
ALLL / Nonaccrual Loans = 179.57 % . ALLL / Total Loans = 0.89%. Classified Assets / Total Assets = 0.98%.
Total capital ratio = 13.17%.
Tier 1 capital ratio = 10.77%.
Tangible common equity ratio = 8.41%.
Tangible book value per share = $11.75.
1 See Appendix for non-GAAP reconciliation and Slide 20 for Adjusted Earnings detail
MSFG 1Q 2018 Highlights1
18
Total assets decreased $95.0, to $4.6 billion, or 8.3% annualized, compared to the linked quarter.
EOP loans decreased $58.9 million, to $3.0 billion, compared to linked quarter
EOP deposits decreased $66.5 million, to $3.4 billion, compared to linked quarter
EOP investment securities of $1.1 billion
Balance Sheet
Profitability2
Asset Quality
Income Statement
Capital
Noninterest income = $12.5 million.
Noninterest expense = $30.0 million2.
Efficiency ratio = 59.3%2.
Net interest income = $37.0 million, a $0.7 million decrease compared to the linked quarter.
Net interest margin of 3.71% on a fully tax equivalent basis, a 7 bp decrease from the linked quarter driven
by the lower FTE adjustment due to tax reform.
Net income = $16.4 million or $0.63 per diluted share
Return on average assets = 1.45%
Return on average shareholders’ equity = 12.6%
Return on average tangible common equity = 17.6%
Provision expense = $0.4 million. Net charge offs = $3.7 million.
Nonperforming loans declined $4.3 million to $14.3 million
Nonperforming Loans / Total Loans = 0.47%. Nonperforming Assets / Total Assets = 0.29%.
ALLL / Nonaccrual Loans = 161.97%. ALLL / Total Loans = 0.64%. Classified Assets / Total Assets = 0.70%.
EOP Total Equity of $519.3 million
Tangible common equity ratio = 8.38%.
Tangible book value per share = $14.40.
1 MainSource merged with First Financial on April 1, 2018. The Highlights on this page provide selected financial data prepared by management for the quarter
ended March 31, 2018. First Financial will file an amendment to Form 8-K on or before June 10, 2018 that will include financial statements for MainSource and
combined pro forma financial information for First Financial and MainSource as if the Merger was effective on March 31, 2018. The pro forma financial information
will reflect various adjustments required by applicable acquisition accounting rules that are not reflected in these Highlights.
2 Adjusted for merger-related expenses
Presentation Contents
About First Financial Bancorp
Financial Performance
FFBC 1Q 2018 Standalone
Appendix
19
Adjusted Net Income1
20
The table below lists certain items that we believe are significant to understanding our quarterly performance.
53.8%
58.0%57.0%
59.7%59.6%
1Q184Q173Q172Q171Q17
Adjusted Efficiency Ratio
$0.52
$0.45
$0.39$0.36$0.39
1Q184Q173Q172Q171Q17
Adjusted EPS
1.49%
1.26%
1.11%1.06%1.16%
1Q184Q173Q172Q171Q17
Adjusted ROA
18.2%
15.5%
13.9%13.4%14.7%
1Q184Q173Q172Q171Q17
Adjusted ROTCE
1 See appendix for non-GAAP reconciliation
All dollars shown in thousands, except per share amounts
1Q 2018
As
Reported Adjusted
Net interest income $ 75,812 $ 75,812
Provision for loan and lease losses $ 2,303 $ 2,303
Noninterest income $ 16,938 $ 16,938
Total noninterest income $ 16,938 $ 16,938
Noninterest expense $ 52,288 $ 52,288
less: merger-related expenses 1,985 A
less: final loss share settlement 527 A
less: other (113) A
Total noninterest expense $ 52,288 $ 49,889
Income before income taxes $ 38,159 $ 40,558
Income tax expense $ 7,653 $ 7,653
plus: tax effect of adjustments (A) @ 21% statutory rate 504
Total income tax expense $ 7,653 $ 8,157
Net income $ 30,506 $ 32,401
Net earnings per share - diluted $ 0.49 $ 0.52
Profitability
21
Net Income & Diluted EPS Return on Average Assets
Return on Tangible Common Equity1
1 Non-GAAP financial measure; see Appendix for non-GAAP reconciliation
All dollars shown in millions, except per share data
$30.5
$24.8$24.8
$22.7
$24.4
$0.49
$0.40$0.40$0.37
$0.39
1Q184Q173Q172Q171Q17
Net Income EPS - diluted
$8,830$8,732$8,717$8,583$8,409
1.40%
1.13%1.13%
1.06%
1.18%
1Q184Q173Q172Q171Q17
Average Assets ROAA
$720
$711
$698
$680
$661
17.17%
13.85%14.10%13.42%
14.98%
1Q184Q173Q172Q171Q17
Average Tangible Equity ROATCE
Net Interest Income / Net Interest Margin
22
1 Gross loans include loans held for sale & FDIC indemnification asset
All dollars shown in millions
Net Interest Income Average Loans1
Average Securities Average Deposits
$75.8$75.6
$70.5
$68.5$68.9
3.84%3.82%
3.57%
3.56%
3.70%
1Q184Q173Q172Q171Q17
Net Interest Income Net Interest Margin (FTE)
$2,043$2,020$2,042$2,035$1,907
3.04%
2.90%2.85%
2.77%2.76%
1Q184Q173Q172Q171Q17
Average Investment Securities
Investment Securities Yield
23%24%23%23%23%
21%22%22%23%23%
36%37%37%37%35%
21%17%18%18%19%
$6,903$6,840$6,680$6,570$6,442
0.60%
0.54%
0.61%
0.53%
0.44%
1Q184Q173Q172Q171Q17
Avg NIB Demand Avg IB Demand Avg Savings
Avg Time Cost of Deposits
$6,018$5,960$5,911$5,800$5,748
5.05%
4.90%
4.71%
4.61%4.64%
1Q184Q173Q172Q171Q17
Gross Loans Loan Yield
Net Interest Margin
23
Net Interest Margin (FTE) 1Q18 NIM (FTE) Progression
3.69%
3.58%
3.43%3.41%
3.48%
0.15%
0.24%
0.14%0.15%
0.22%
3.84%3.82%
3.57%3.56%
3.70%
1Q184Q173Q172Q171Q17
Basic Margin (FTE) Loan Fees
4Q17 3.82%
Asset Yields 0.17%
Rising interest rates and yield
expansion
Covered/formerly
covered loans 0.04% Loss share termination
Loan Fees -0.09% Higher 4Q17 prepayment fees
Asset Drivers 0.12%
Funding Costs -0.05%
Increased wholesale funding and
deposit costs
Funding Mix -0.05%
Mix shift toward higher wholesale
funding balances
Liability Drivers -0.10%
Other 0.03% Day count
FTE Adjustment -0.03% Impact from tax reform
1Q18 3.84%
Loan Portfolio
24
Loan Product Mix (EOP) Net Loan Change (Linked Quarter)
* Includes residential mortgage, home equity, installment, & credit card loans
All dollars shown in millions
33%33%33%33%32%
11%11%12%12%12%
31%30%30%30%29%
8%8%7%8%8%
17%18%18%18%18%
$6,102 $6,013 $5,977 $5,874 $5,754
1Q184Q173Q172Q171Q17
Commercial & Leasing Owner Occupied CRE Investor CRE
Construction Consumer Lending*
-$11.6
$42.0
-$18.7
-$3.7
$65.5
$30.6
-$15.3
Commercial & Leasing
Commercial Finance
Owner Occupied CRE
Owner Occupied Construction
Investor CRE
Investor Construction
Consumer Lending*
Total
C&I
$8.0
Asset Quality
25
Nonperforming Assets / Total AssetsClassified Assets / Total Assets
Allowance / Total Loans Net Charge Offs & Provision Expense
All dollars shown in millions
$87.6$87.3
$94.3$98.4
$114.6
0.98%0.98%
1.08%1.13%
1.34%
1Q184Q173Q172Q171Q17
Classified Assets Classified Assets / Total Assets
$46.3$44.4
$52.9
$62.7$68.4
0.52%0.50%
0.60%
0.72%
0.80%
1Q184Q173Q172Q171Q17
NPAs NPAs / Total Assets
$54.4$54.0$54.5$54.9$56.3
0.89%0.90%0.91%0.93%
0.98%
1Q184Q173Q172Q171Q17
Allowance for Loan Losses ALLL / Total Loans
$2.0 $1.9
$3.3
$0.3
$1.9
$0.4 $0.5
$3.0
-$0.2
$2.3
0.13%
0.02%
0.22%0.13%0.14%
1Q17 2Q17 3Q17 4Q17 1Q18
NCOs Provision Expense NCOs / Average Loans
Capital
26
Tier 1 Common Equity
Tangible Book Value Total Capital
Tangible Common Equity
$730.9$721.3
$705.2
$688.1
$669.7
$11.75 $11.62
$11.36
$11.07
$10.78
1Q184Q173Q172Q171Q17
Tangible Book Value Tangible Book Value per Share
$730.9$721.3
$705.2
$688.1
$669.7
8.41%8.30%8.25%8.09%8.05%
1Q184Q173Q172Q171Q17
Tangible Book Value Tangible Common Ratio
$953.2$929.1$920.6$905.2$892.2
13.17%13.07%12.98%13.05%13.19%
12.50%
1Q184Q173Q172Q171Q17
Total Capital Total Capital Ratio Target
$779.5
$755.7
$746.7$731.0
$716.7
10.77%10.63%
10.53%10.54%10.59%
10.50%
1Q184Q173Q172Q171Q17
Tier 1 Common Equity Tier 1 Common Ratio Target
All capital numbers are considered preliminary
All dollars shown in millions
Presentation Contents
About First Financial Bancorp
Financial Performance
FFBC 1Q 2018 Standalone
Appendix
27
Appendix: Non-GAAP to GAAP Reconciliation
28
Net interest income and net interest margin - fully tax equivalent
Three months ended
Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31,
2018 2017 2017 2017 2017
Net interest income $ 75,812 $ 75,614 $ 70,479 $ 68,520 $ 68,932
Tax equivalent adjustment 718 1,387 1,353 1,294 1,225
Net interest income - tax equivalent $ 76,530 $ 77,001 $ 71,832 $ 69,814 $ 70,157
Average earning assets $ 8,087,848 $ 8,005,100 $ 7,989,969 $ 7,855,564 $ 7,695,717
Net interest margin* 3.80 % 3.75 % 3.50 % 3.50 % 3.63 %
Net interest margin (fully tax equivalent)* 3.84 % 3.82 % 3.57 % 3.56 % 3.70 %
* Margins are calculated using net interest income annualized divided by average earning assets.
This investor presentation includes certain non-GAAP ratios, such as net interest income-tax equivalent. The tax equivalent adjustment to net interest income recognizes the income
tax savings when comparing taxable and tax-exempt assets and assumes a 21% tax rate for 2018 and a 35% tax rate for 2017. Management believes that it is a standard practice in
the banking industry to present net interest margin and net interest income on a fully tax equivalent basis. Therefore, management believes these measures provide useful
information to investors by allowing them to make peer comparisons. Management also uses these measures to make peer comparisons.
Appendix: Non-GAAP to GAAP Reconciliation
29
Additional non-GAAP ratios
Mar. 31, Dec. 31, Sep. 30, June 30, Mar. 31,
(Dollars in thousands, except per share data) 2018 2017 2017 2017 2017
Net income (a) 30,506$ 24,811$ 24,826$ 22,736$ 24,414$
Average total shareholders' equity 929,474 920,194 908,057 889,604 871,215
Less:
Goodwill and other intangibles (209,053) (209,379) (209,730) (210,045) (210,324)
Average tangible equity (b) 720,421 710,815 698,327 679,559 660,891
Total shareholders' equity 939,985 930,664 914,954 898,117 880,065
Less:
Goodwill and other intangibles (209,053) (209,379) (209,730) (210,045) (210,324)
Ending tangible equity (c) 730,932 721,285 705,224 688,072 669,741
Total assets 8,898,429 8,896,923 8,761,689 8,710,042 8,531,170
Less:
Goodwill and other intangibles (209,053) (209,379) (209,730) (210,045) (210,324)
Ending tangible assets (d) 8,689,376 8,687,544 8,551,959 8,499,997 8,320,846
Risk-weighted assets (e) 7,240,731 7,108,629 7,090,714 6,936,665 6,765,336
Total average assets 8,830,176 8,731,956 8,716,917 8,582,961 8,409,071
Less:
Goodwill and other intangibles (209,053) (209,379) (209,730) (210,045) (210,324)
Average tangible assets (f) 8,621,123$ 8,522,577$ 8,507,187$ 8,372,916$ 8,198,747$
Ending shares outstanding (g) 62,213,823 62,069,087 62,061,465 62,141,071 62,134,285
Ratios
Return on average tangible shareholders' equity (a)/(b) 17.17% 13.85% 14.10% 13.42% 14.98%
Ending tangible equity as a percent of:
Ending tangible assets (c)/(d) 8.41% 8.30% 8.25% 8.09% 8.05%
Risk-weighted assets (c)/(e) 10.09% 10.15% 9.95% 9.92% 9.90%
Average tangible equity as a percent of average tangible assets (b)/(f) 8.36% 8.34% 8.21% 8.12% 8.06%
Tangible book value per share (c)/(g) 11.75$ 11.62$ 11.36$ 11.07$ 10.78$
Three months ended
This investor presentation includes certain non-GAAP ratios. These ratios include: (1) Return on average tangible shareholders' equity; (2) Ending tangible shareholders' equity as a percent of ending tangible
assets; (3) Ending tangible shareholders' equity as a percent of risk-weighted assets; (4) Average tangible shareholders' equity as a percent of average tangible assets; and (5) Tangible book value per share.
The Company considers these critical metrics with which to analyze banks. The ratios have been included in the investor presentation to facilitate a better understanding of the Company's capital structure
and financial condition.
Appendix: Non-GAAP to GAAP Reconciliation
30
Additional non-GAAP ratios
As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted As Reported Adjusted
Net interest income (f) 75,812$ 75,812$ 75,614$ 75,614$ 70,479$ 70,479$ 68,520$ 68,520$ 68,932$ 68,932$
Provision for loan and lease losses 2,303 2,303 (205) (205) 2,953 2,953 467 467 367 367
plus: provision expense adjustment 799
Noninterest income 16,938 16,938 18,382 18,382 22,942 22,942 17,454 17,454 17,364 17,364
less: gains from the redemption of off balance sheet securitizations 5,764
less: tax related adjustment to a limited partnership investment (119)
less: gains on sale of investment securities - 19 275 838 516
Total noninterest income (g) 16,938 16,938 18,382 18,363 22,942 16,903 17,454 16,735 17,364 16,848
Noninterest expense 52,288 52,288 82,898 82,898 54,443 54,443 51,556 51,556 51,045 51,045
less: severance expense 3,818 533
less: charter conversion expenses
less: historic tax credit investment write-down 11,328
less: merger-related expenses 1,985 8,444 800
less: indemnification asset impairment 1 527 5,055
less: charitable foundation contribution 3,000
less: other (113) 577 154 (92)
Total noninterest expense (e) 52,288 49,889 82,898 54,494 54,443 49,825 51,556 50,869 51,045 51,137
Income before income taxes (i) 38,159 40,558 11,303 39,688 36,025 35,403 33,951 33,919 34,884 34,276
Income tax expense 7,653 7,653 (13,508) (13,508) 11,199 11,199 11,215 11,215 10,470 10,470
plus: tax effect of adjustments 504 9,935 (178) (11) (213)
plus: tax reform impact on DTLs & tax partnerships 8,191
plus: after-tax impact of historic tax credit write-down @ 35% - 7,363 -
Total income tax expense (h) 7,653 8,157 (13,508) 11,981 11,199 11,021 11,215 11,204 10,470 10,257
Net income (a) 30,506$ 32,401$ 24,811$ 27,707$ 24,826$ 24,382$ 22,736$ 22,715$ 24,414$ 24,019$
Average diluted shares (b) 62,181 62,181 62,132 62,132 62,190 62,190 62,234 62,234 62,140 62,140
Average assets (c) 8,830,176 8,830,176 8,731,956 8,731,956 8,716,917 8,716,917 8,582,961 8,582,961 8,409,071 8,409,071
Average shareholders' equity 929,474 929,474 920,194 920,194 908,057 908,057 889,604 889,604 871,215 871,215
Less:
Goodwill and other intangibles (209,053) (209,053) (209,379) (209,379) (209,730) (209,730) (210,045) (210,045) (210,324) (210,324)
Average tangible equity (d) 720,421 720,421 710,815 710,815 698,327 698,327 679,559 679,559 660,891 660,891
1 - Impairment charge related to preliminary agreement to terminate FDIC loss sharing agreements.
Ratios
Net earnings per share - diluted (a)/(b) 0.49$ 0.52$ 0.40$ 0.45$ 0.40$ 0.39$ 0.37$ 0.37$ 0.39$ 0.40$
Return on average assets - (a)/(c) 1.40% 1.49% 1.13% 1.26% 1.13% 1.11% 1.06% 1.06% 1.18% 1.16%
Return on average tangible shareholders' equity - (a)/(d) 17.17% 18.24% 13.85% 15.46% 14.10% 13.85% 13.42% 13.41% 14.98% 14.74%
Efficiency ratio - (e)/((f)+(g)) 56.4% 53.8% 88.2% 58.0% 58.3% 57.0% 60.0% 59.7% 59.2% 59.6%
Effective tax rate - (h)/(i) 20.1% 20.1% -119.5% 30.2% 31.1% 31.1% 33.0% 33.0% 30.0% 29.9%
1Q17
(Dollars in thousands, except per share data)
1Q18 4Q17 3Q17 2Q17
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First Financial Bank
First Financial Center
255 East Fifth Street
Suite 800
Cincinnati, OH 45202-4248